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Counterfactuals

It is the state of the world in which the people who did receive the program did not receive the program (or conversely, the world in which the people who did not receive the program did receive the program.) Since we cannot travel back in time to change our treatment assignment and observe the counterfactual set of outcomes, the counterfactual fundamentally cannot be measured or observed.

  • The counterfactual fundamentally cannot be measured or observed.
  • However, it can be mimicked very accurately by randomly assigning the treatment in a sufficiently large sample.
  • The process of randomization allows us to generate a comparable group that in expectation is similar to the treatment group and thus provides a plausible, accurate demonstration of what the counterfactual might have looked like.

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The counterfactual fundamentally cannot be measured or observed

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